Bharat Petroleum Corp Ltd (BPCL) announced its intention to spend a total amount of of Rs 1.5 lakh crore over the next five years for their transformative ‘Project Aspire’. During its 70th annual general meeting, the company’s Chairman and Managing Director, G Krishna Kumar, elaborated on the initiative’s objectives. Beyond its primary oil business, BPCL aims to broaden its renewable energy ventures with an eye on achieving a net-zero target by 2040.
Project Aspire is rooted in eight central pillars which Krishna Kumar classified under two overarching themes:
- Nurturing the Core:
- Upstream initiatives
- Future Big Bets:
- Non-fuel retail
- Green energy businesses
- Digital ventures
The dedicated Rs 1.5 lakh crore outlay over half a decade is envisioned to foster enduring value for BPCL stakeholders. In addition, from now till 2040, BPCL is poised to channel Rs 1 lakh crore into green hydrogen projects, carbon capture, utilisation and storage (CCUS), and amplifying energy efficiency to reduce emissions.
Addressing the energy landscape and governmental policies, the oil marketing company (OMC) is recalibrating and reprioritizing its focal areas. Krishna Kumar emphasized the company’s emphasis on enhancing its refining prowess and its pursuit of greater operational adaptability.
BPCL has recognized a projected product deficit in Northern India of about 10 million tonne per annum (mtpa) by 2030. To bridge this, BPCL aims to elevate the capacity of its Bina refinery from the current 7.8 mtpa to 11 mtpa to cater to markets in Northern and Central India more effectively.
On the exploration front, BPCL remains dedicated to oil and gas ventures, especially prioritizing discoveries in Mozambique and Brazil. Krishna Kumar underscored petrochemicals as a pivotal future endeavour, noting India’s anticipated 5% growth in polymer demand up to 2040. To this end, BPCL intends to set up an Ethylene Cracker Project at Bina, with an investment of Rs 49,000 crore. This will bolster the petrochemicals share in BPCL’s product mix to nearly 8 percent.
As of August 2023, BPCL’s capital expenditure stood at Rs 26,943 Crores across 107 projects, primarily channelled into Refineries & Petrochemicals and Crude/POL Pipelines. However, their strategic forays into Non-Conventional Energy, Storage & Distribution, and Commercial Real Estate highlight their adaptive approach in a shifting global energy scenario. Their infrastructural commitments, especially in pipelines and storage, echo BPCL’s vision to fortify its vanguard status in India’s energy domain.
Image curtsey: www.bharatpetroleum.in